Huasheng International Holding Limited (1323) AI Stock Analysis

• Market Cap: HK$122.42M
• Dividend Yield: N/A
• Average Volume (3M): 305.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -25.73%
• EPS Growth: -420.73%
• Country: HK
• Employees: 173
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Household & Personal Products
• EPS (TTM): -0.09
• Shares Outstanding: 755,654,700
• 10 Day Avg. Volume: 86,200
• 30 Day Avg. Volume: 305,420
• PEG Ratio: 0.03
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ―

Huasheng International Holding Limited shows significant risks with declining revenue and profitability. However, strong cash flow metrics and a stable balance sheet provide some support. Positive short-term price momentum is noted, but valuation concerns persist due to negative earnings.

Huasheng International Holding Limited Business Overview & Revenue Model

Company Description

Huasheng International Holding Limited, an investment holding company, engages in the concrete, money lending, and household consumables businesses in Hong Kong, the United Kingdom, and the People's Republic of China. The company is involved in the wholesale and retail of household consumables; and money lending activities. It also produces and sells ready-mixed commercial concrete; and cement and construction materials, as well as provides management services. The company was formerly known as Newtree Group Holdings Limited and changed its name to Huasheng International Holding Limited in March 2020. Huasheng International Holding Limited was incorporated in 2010 and is based in Central, Hong Kong.

How the Company Makes Money

Huasheng International Holding Limited generates revenue through the sale of its consumer products, which include apparel, accessories, and home goods. The company capitalizes on its extensive distribution network and strategic partnerships with retailers and wholesalers to reach a broad customer base. Additionally, Huasheng International may engage in strategic investments and acquisitions to enhance its market position and expand its product offerings, thereby contributing to its income stream. The company's revenue is largely driven by its ability to maintain competitive pricing and quality, ensuring repeat business and customer loyalty.

Huasheng International Holding Limited Financial Statement Overview

Summary

The company faces declining revenue and operational challenges, with a weak income statement. However, the balance sheet is stable with moderate leverage and strong equity, while cash flow metrics are strong, indicating good cash management.

Income Statement

The company shows declining revenue with a negative revenue growth rate of -14.27% from the previous year. Gross profit margin decreased to 27.29% from 28.82% last year, indicating erosion in profitability. Net profit margin remains negative at -5.56%, although slightly improved from -8.29% last year. The EBIT margin is very low at 0.18%, suggesting operational challenges. EBITDA margin improved to 3.48% from negative last year, but remains weak.

Balance Sheet

The debt-to-equity ratio is 0.35, indicating moderate leverage. ROE is negative at -3.27%, reflecting operational inefficiencies and losses. The equity ratio is strong at 58.72%, suggesting a solid financial structure. Overall, the balance sheet shows stability with a strong equity base but is offset by negative returns.

Cash Flow

Free cash flow growth is positive, with a significant increase from -70.97 million to 90.70 million, indicating improved cash generation. Operating cash flow to net income ratio is robust at 3.08, showcasing good cash conversion relative to earnings. Free cash flow to net income ratio is also strong at 2.89, reflecting efficient cash management despite negative net income.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
458.68M	565.91M	660.37M	803.91M	919.33M	202.38M
	Gross Profit
105.43M	154.46M	190.35M	181.54M	198.01M	78.57M
	EBIT
8.80M	49.18M	4.01M	46.38M	39.81M	-16.55M
	EBITDA
28.73M	19.68M	-1.60M	82.69M	75.86M	-30.53M
	Net Income Common Stockholders
-52.06M	-31.44M	-54.77M	31.29M	-1.63M	-78.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
140.52M	163.36M	69.49M	167.83M	121.53M	18.24M
	Total Assets
1.58B	1.64B	1.80B	2.03B	1.73B	1.53B
	Total Debt
332.51M	338.40M	376.30M	341.71M	357.32M	340.05M
	Net Debt
192.00M	175.04M	306.81M	203.17M	247.20M	321.81M
	Total Liabilities
628.65M	675.58M	834.50M	1.07B	815.30M	792.17M
	Stockholders Equity
953.93M	960.40M	964.30M	955.48M	919.17M	738.27M
Cash Flow		Free Cash Flow
104.67M	90.70M	-70.97M	70.98M	-29.86M	-11.94M
	Operating Cash Flow
110.71M	96.75M	-66.22M	77.98M	-22.28M	-11.70M
	Investing Cash Flow
-467.00K	9.90M	-79.98M	-105.20M	-12.03M	-73.73M
	Financing Cash Flow
-8.99M	-11.62M	117.50M	-51.15M	127.67M	57.11M

Huasheng International Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1323, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.17, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.09 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1323.

Huasheng International Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1323	56 Neutral	HK$122.42M	―	-5.49%	―	-25.73%	-420.73%
8106	55 Neutral	HK$70.92M	―	-12.75%	―	86.07%	84.96%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
8143	51 Neutral	HK$127.38M	―	-18.22%	―	-56.16%	62.50%
8153	45 Neutral	HK$74.10M	―	-34.93%	―	8.14%	70.74%
8168	45 Neutral	HK$69.87M	―	-34.27%	―	-30.21%	-305.00%

Huasheng International Holding Limited Corporate Events

Huasheng International Sells Majority Stake in Chengxin Finance

Huasheng International Holding Limited has announced the disposal of 65% share capital in Chengxin Finance Limited. The transaction involves a consideration of HK$32.5 million, with HK$12 million paid in cash and the remaining through promissory notes. The payment terms are considered fair due to secured repayment obligations and interest-bearing notes. The board of the disposal company will include a director appointed by the vendor, indicating continued influence in the company’s operations post-transaction.

Huasheng International Enhances Property Acquisition Disclosure with Valuation Details

Huasheng International Holding Limited has announced a supplemental disclosure regarding its acquisition of properties, providing additional details on the valuation of these assets. The properties, appraised by Roma Appraisals Limited, have been valued using a market approach, with adjustments made for differences between the subject properties and comparable sales in the market. This acquisition and valuation detail may impact the company’s asset portfolio and provide insights into its strategic positioning in the real estate market.

Huasheng International Announces Property Acquisition Transaction

Huasheng International Holding Limited, incorporated in the Cayman Islands, announced a discloseable transaction involving the acquisition of properties by its wholly-owned subsidiaries. On April 9, 2025, the subsidiaries entered into purchase agreements with vendors to acquire properties, with the transaction being classified as discloseable under the Hong Kong Stock Exchange Listing Rules. The acquisitions, calculated on an aggregated basis, exceed 5% but are less than 25% of the company’s applicable percentage ratios, necessitating reporting and announcement requirements.

Huasheng International Announces Sale of Majority Stake in Chengxin Finance

Huasheng International Holding Limited has announced a discloseable transaction involving the sale of 65% share capital in Chengxin Finance Limited. The transaction, valued at HK$32.5 million, involves a purchaser who is a licensed money lender in Hong Kong. This disposal is classified as a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules, requiring notification and announcement due to its applicable percentage ratios.